It is not true. the banks are not in the landlord business. the liability is too great. Some cities etc are trying to pass ordinances with a minimum of 3-6 month eviction periods which then violate some local ordinaces that require rental buildings to have a certificate of compliance or occupancy that mandate they are pulled upon a bank takling ownership and the new owner has to reapply, then fining the building for having a tenant without a co or coc. . In most cases the bank that forecloses does not end up with the property. it is taken by the PMI company, or fnma or freddie mac or hud and even sold as part of a pool to another bank or investor. The unfortanate thing is the tenant is caught up in the middle. all the banks i list for offer a generous cash for keys to assist the tenants in moving. In some buildings the tenants though are not being inncocent refusing to leave and damaging the building, stripping cabinets, appliances, furnaces and all the copper when they do leave. As a listing agent i try to assist the innocent ones who paid their rent but landlords didnt seem to poay the mortgage in fining new homes or apartments and assist them with getting the cash for keys. it is tough for all involved on either side of the fence.